Question 1 You purchased Komatsu's stocks by paying 100,000 yen last year.  You received 5,000 yen as dividend during the past year and sold stocks at 110,000 yen yesterday.     How much was the income gain?   Answer  yen     How much was the capital gain?   Answer yen

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 1

You purchased Komatsu's stocks by paying 100,000 yen last year.  You received 5,000 yen as dividend during the past year and sold stocks at 110,000 yen yesterday.

 

<Question 1-1>  How much was the income gain?

  Answer  yen

 

<Question 1-2>  How much was the capital gain?

  Answer yen

 

Question 2

Out of the following revenues, choose one which is not income gain.

  1. interest income obtained from bank deposit
  2. dividend income obtained from Komatsu stocks
  3. revenue obtained from lending apartment
  4. monthly salary obtained from working in convenience store

 

Question 3

Calculate cost of debt.

 <Question 3-1>  Interest rate of bank borrowing is 4%.  Tax rate is 30%.

  Answer  %

 

 <Question 3-2>  Interest rate of corporate bond is 6%.  Tax rate is 30%.

  Answer  %

 

Question 4

 Calculate weighted average cost of capital.  Answer should be at 1st decimal point after rounding the 2nd decimal point.

 <Question 4-1>

  Interest rate of bank borrowing:  4%

 Tax rate: 30%.

  Cost of equity:  8%

  Amount of debt:  3 billion yen

  Amount of equity:  5 billion yen

 

  Answer  %

 

 <Question 4-2>

  Interest rate of bank borrowing:  5%

 Tax rate: 30%.

  Cost of equity:  9%

  Amount of debt:  2 billion yen

  Amount of equity:  4 billion yen

 

  Answer  %

 

 

 

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